Warren Buffett and Philippe Laffont Invest $5.6 Billion in Alphabet During AI Surge

Billionaire Investments in Alphabet: Three billionaire investors, including Warren Buffett's Berkshire Hathaway, invested a total of $5.6 billion in Alphabet Inc. during Q3, with Berkshire initiating a $4.3 billion position, Coatue Management increasing its stake by 259%, and Duquesne Family Office acquiring shares valued at $24.8 million.

Alphabet's Financial Performance: Alphabet reported a record $102.3 billion in quarterly revenue for Q3 2025, marking a 16% year-over-year increase, with significant growth in Google Cloud revenue and a surge in AI product usage among existing customers.

Market Confidence and Stock Performance: The investments reflect confidence in Alphabet's ability to leverage AI for monetization while maintaining its search and advertising dominance, leading to a 5% increase in stock price after the announcement of Berkshire's stake.

Valuation Comparison: Alphabet's stock trades at approximately 27 times forward earnings, which is lower than competitors like Microsoft and Nvidia, indicating potential for growth as the company continues to expand its AI capabilities.